ACCRA, Ghana, 11 June Ghana and the European Union (EU) have signed a new agreement for 130 million ECU (about 163 million dollars) under the National Indicative Programme (NIP) for the eighth European Development Fund.

The agreement, signed here on Tuesday, which is within the framework of the Lome Four Convention, a financial protocol between 70 African, Caribbean and Pacific (ACP) countries and the E.U., covers Ghana's NIP for 1996 to 2000.

The NIP identifies transport infrastructure and rural development as the focal sectors in which the grant will be used.

Victor Selormey, Deputy Minister of Finance, signed for Ghana while Phillipe Soubestre, Director-General of Development of the European Commission, initialled for the E.U.

Under the NIP, transport sector and rural development will absorb about 80 percent of the amount while the non-focal sectors which were identified as private sector development, health and education will use the remaining 20 percent. PANA